import of sevices

[CASUNIL BHANSALI]

Pls. opine for following FACTS A Ltd company registered in India making Export to USA on DDP basis ( Delivered Duty Paid ). Now the Company has appointed a CHA in USA whose duty is to pay the Import duty ,take the delivery of the Goods and make arrangement for delivery of Goods to the Buyer's place. The CHA is raising its Invoice on Indian Company for his services and reimburesement of Import duty and other expense seperatly. The Indian Company is making payment in Foreign currency through proper Banking Channel to the CHA. The Indian Company is also paying professional service charges to different persons in abroad for procuring orders for the Indian Company. Querry:- 1) Whether the service rendered by the CHA is taxable under the SERVICE TAX ? 2) Pl clariy about the service tax implication on reimbursement of Import Duty and other Expenses. 3) Whether paying of professional service charges to different persons in abroad for procuring orders for the Indian Company is taxable under the Service Tax..

AI Summary

Indian Exporter Faces Service Tax on CHA Services and Order Procurement Payments, Exempting Pure Agent Expenses An Indian company, A Ltd, exports goods to the USA on a Delivered Duty Paid basis and has appointed a Customs House Agent (CHA) in the USA to handle import duties and delivery. The CHA invoices the Indian company for services and reimbursed expenses, which are paid in foreign currency. The company also pays foreign professionals for order procurement. The query seeks clarity on the applicability of service tax on these transactions. The response indicates that services by the CHA and payments for order procurement are taxable under the reverse charge method, except for customs duties and expenses incurred as a 'Pure Agent,' which are not subject to service tax.